1     
ABLE ACT REVISIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Todd Weiler

5     
House Sponsor: Rebecca P. Edwards

6     

7     LONG TITLE
8     General Description:
9           This bill modifies provisions of the Achieving a Better Life Experience Program Act.
10     Highlighted Provisions:
11          This bill:
12          ▸      defines terms;
13          ▸     directs the Department of Workforce Services to either:
14               •     administer the state Achieving a Better Life Experience Program (ABLE);
15               •     enter into a contract with a state that maintains a qualified ABLE program to
16     provide Utah residents access to that state's qualified ABLE program; or
17               •     inform eligible individuals and parents or legal guardians of eligible individuals
18     about qualified ABLE programs offered by other states to which Utah residents
19     may apply; and
20          ▸     allows persons that contribute to an account in any qualified ABLE program to
21     claim a nonrefundable state tax credit.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          35A-12-102, as enacted by Laws of Utah 2015, Chapter 460

29          35A-12-201, as enacted by Laws of Utah 2015, Chapter 460
30          59-7-620, as enacted by Laws of Utah 2015, Chapter 460
31          59-10-1035, as enacted by Laws of Utah 2015, Chapter 460
32     REPEALS:
33          35A-12-202, as enacted by Laws of Utah 2015, Chapter 460
34          35A-12-301, as enacted by Laws of Utah 2015, Chapter 460
35          35A-12-302, as enacted by Laws of Utah 2015, Chapter 460
36          35A-12-303, as enacted by Laws of Utah 2015, Chapter 460
37          35A-12-304, as enacted by Laws of Utah 2015, Chapter 460
38          35A-12-305, as enacted by Laws of Utah 2015, Chapter 460
39          35A-12-401, as enacted by Laws of Utah 2015, Chapter 460
40     

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 35A-12-102 is amended to read:
43          35A-12-102. Definitions.
44          As used in this chapter:
45          (1) "Account" means [a state Achieving a Better Life Experience Program account
46     established under this chapter] an account in a qualified ABLE program .
47          [(2) "Account administrator" means a person who administers accounts in accordance
48     with this chapter.]
49          [(3) "Account agreement" means an agreement between an account administrator and
50     an account owner to establish an account.]
51          [(4) "Account owner" means the following who enter into an agreement with an
52     account administrator to establish an account under this chapter:]
53          [(a) an eligible individual; or]
54          [(b) if the eligible individual is under 18 years of age or is incapacitated, a parent or
55     legal guardian of the eligible individual.]

56          [(5) "Beneficiary" means an individual who is:]
57          [(a) an eligible individual;]
58          [(b) a resident of:]
59          [(i) this state; or]
60          [(ii) a contracting state; and]
61          [(c) designated as the beneficiary of an account under an account agreement.]
62          [(6) "Contracting state" means a state that:]
63          [(a) does not have an Achieving a Better Life Experience program that meets the
64     requirements to be a qualified Achieving a Better Life Experience program under the federal
65     Achieving a Better Life Experience Act; and]
66          [(b) has entered into a contract with this state to provide residents of the other state
67     access to the state Achieving a Better Life Experience Program.]
68          [(7) "Eligible individual" means an individual who, before the individual turns 26 years
69     of age:]
70          [(a) as determined by the department, has a medically determinable physical or mental
71     impairment that:]
72          [(i) results in marked and severe functional limitations that can be expected to result in
73     death; or]
74          [(ii) has lasted or can be expected to last for a continuous period of 12 months or more;
75     or]
76          [(b) is eligible for benefits under title II or title XVI of the Social Security Act on the
77     basis of blindness.]
78          [(8) "Federal Achieving a Better Life Experience Act" means the Stephen Beck, Jr.,
79     Achieving a Better Life Experience Act of 2014, Pub. L. No. 113-295, 128 Stat. 4010.]
80          [(9) "Qualified disability expenses" means the same as that term is defined in the
81     federal Achieving a Better Life Experience Act.]
82          (2) "Qualified ABLE program" means the same as that term is defined in 26 U.S.C.

83     Sec. 529A.
84          [(10)] (3) "State Achieving a Better Life Experience Program" means the program
85     created by this chapter.
86          Section 2. Section 35A-12-201 is amended to read:
87          35A-12-201. Creation of program.
88          (1) There is created the state Achieving a Better Life Experience Program.
89          (2) The department shall do one of the following:
90          (a) administer the [program] state Achieving a Better Life Experience Program in
91     compliance with:
92          [(a) this chapter;]
93          [(b) the federal Achieving a Better Life Experience Act; and]
94          (i) 26 U.S.C. Sec. 529A; and
95          [(c)] (ii) regulations, if any, issued by the United States Department of the Treasury[.];
96          [(3) The program shall authorize the creation of an account for the purpose of allowing
97     contributions on behalf of a beneficiary for the payment of qualified disability expenses.]
98          [(4) Subject to Subsection 35A-12-301(3), the department shall ensure that
99     contributions to an account:]
100          [(a) are held in trust for a beneficiary; and]
101          [(b) may not be used for a purpose other than the payment of qualified disability
102     expenses.]
103          (b) enter into a contract with a state that maintains a qualified ABLE program to
104     provide Utah residents access to that state's qualified ABLE program; or
105          (c) inform eligible individuals and parents or legal guardians of eligible individuals
106     about qualified ABLE programs offered by other states to which Utah residents may apply.
107          (3) This chapter may not be interpreted to:
108          (a) authorize or provide a disability-related service to an eligible individual;
109          (b) be a factor in establishing residency; or

110          (c) provide that contributions made into an account are sufficient to cover the qualified
111     disability expenses of an eligible individual.
112          (4) An account is not insured or guaranteed by the state.
113          (5) The state does not guarantee the rate or payment of interest or other return on an
114     account.
115          Section 3. Section 59-7-620 is amended to read:
116          59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
117     Life Experience Program account.
118          (1) As used in this section:
119          [(a) "Account" means the same as that term is defined in Section 35A-12-102.]
120          [(b) "Account administrator" means the same as that term is defined in Section
121     35A-12-102.]
122          (a) "Account" means an account in a qualified ABLE program where the designated
123     beneficiary of the account is a resident of this state.
124          [(c)] (b) "Contributor" means a corporation that:
125          (i) makes a contribution to an account; and
126          (ii) receives a statement from the [account administrator in accordance with Section
127     35A-12-304] qualified ABLE program itemizing the contribution.
128          [(d) "State Achieving a Better Life Experience Program" means the same as that term
129     is defined in Section 35A-12-102.]
130          (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
131     529A.
132          (d) "Qualified ABLE program" means the same as that term is defined in Section
133     35A-12-102.
134          (2) A contributor to an account [created under the state Achieving a Better Life
135     Experience Program] may claim a nonrefundable tax credit as provided in this section.
136          (3) Subject to the other provisions of this section, the tax credit is equal to the product

137     of:
138          (a) 5%; and
139          (b) the total amount of contributions:
140          (i) the contributor makes for the taxable year; and
141          (ii) for which the contributor receives a statement from the [account administrator in
142     accordance with Section 35A-12-304] qualified ABLE program itemizing the contributions.
143          (4) A contributor may not claim a tax credit under this section:
144          (a) for an amount of excess contribution to an account that is returned to the
145     contributor [in accordance with Section 35A-12-302]; or
146          (b) with respect to an amount the contributor deducts on a federal income tax return.
147          (5) A tax credit under this section may not be carried forward or carried back.
148          Section 4. Section 59-10-1035 is amended to read:
149          59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better
150     Life Experience Program account.
151          (1) As used in this section:
152          [(a) "Account" means the same as that term is defined in Section 35A-12-102.]
153          [(b) "Account administrator" means the same as that term is defined in Section
154     35A-12-102.]
155          (a) "Account" means an account in a qualified ABLE program where the designated
156     beneficiary of the account is a resident of this state.
157          [(c)] (b) "Contributor" means a claimant, estate, or trust that:
158          (i) makes a contribution to an account; and
159          (ii) receives a statement from the [account administrator in accordance with Section
160     35A-12-304] qualified ABLE program itemizing the contribution.
161          [(d) "State Achieving a Better Life Experience Program" means the same as that term
162     is defined in Section 35A-12-102.]
163          (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.

164     529A.
165          (d) "Qualified ABLE program" means the same as that term is defined in Section
166     35A-12-102.
167          (2) A contributor to an account [created under the state Achieving a Better Life
168     Experience Program] may claim a nonrefundable tax credit as provided in this section.
169          (3) Subject to the other provisions of this section, the tax credit is equal to the product
170     of:
171          (a) 5%; and
172          (b) the total amount of contributions:
173          (i) the contributor makes for the taxable year; and
174          (ii) for which the contributor receives a statement from the [account administrator in
175     accordance with Section 35A-12-304] qualified ABLE program itemizing the contributions.
176          (4) A contributor may not claim a tax credit under this section:
177          (a) for an amount of excess contribution to an account that is returned to the
178     contributor [in accordance with Section 35A-12-302]; or
179          (b) with respect to an amount the contributor deducts on a federal income tax return.
180          (5) A tax credit under this section may not be carried forward or carried back.
181          Section 5. Repealer.
182          This bill repeals:
183          Section 35A-12-202, Application.
184          Section 35A-12-301, Account administrator -- Fees or service charges.
185          Section 35A-12-302, Contributions.
186          Section 35A-12-303, Account agreements -- Beneficiaries.
187          Section 35A-12-304, Duties of account administrator.
188          Section 35A-12-305, Reports.
189          Section 35A-12-401, Scope of chapter -- No state guarantee.